PLAN YEAR 2018 HEALTH SAVINGS ACCOUNT CHARTS

HSA Basic Information:

Using a Health Savings Account (HSA), you can set aside pre-tax money to pay for eligible health care expenses. Examples of the types of medical expenses that you can spend your HSA funds for include:

Deductibles and Coinsurance

Dental, Drug and Vision expenses

Over-the-counter medications, such as aspirin, cold medicines, antacids and cough supplements if you have a prescription from your doctor.

Both you and your employer contribute money to the Health Savings Account (HSA). The maximum annual contribution to an HSA for 2018 is $3,450 for single coverage and $6,900 for dependent coverage. These maximums apply to the sum of your own contributions and your employer’s contributions. embers ages 55+ can make additional “catch up” contributions to their HSA each year until they enroll in Medicare. The additional catch-up contribution for 2018 remains at $1,000. Employees may elect to make changes to their HSA contributions during the calendar year. If no HSA contribution level is selected during Open Enrollment, the contribution amount will default to $25 per pay period.

Your HSA belongs to you and is "portable" which means that even if you leave your employer, you take your account with you and can use it to pay for eligible medical expenses for you and your tax qualified dependents. Since the account belongs to you, you are responsible for the account investments and fees, so be sure to review the HSA investment options and account fees that apply.

HSA Eligibility:

Under IRS guidelines, you are NOT eligible to enroll for a Health Savings Account (HSA) if any of the following apply to you. For this section, You means the employee enrolling in the SEHP:

You are enrolled in Medicare.

You are covered by another health plan that is not a Qualified High Deductible Health Plan.

You are enrolled in the standard Health Care Flexible Spending Account (HCFSA). For those currently enrolled in a HCFSA with a grace period, like the one offered to State employees, you may enroll in and start contributions to the HSA. If there is a balance in your HCFSA, your balance of $500 or less will be rolled into a limited purpose flexible spending account following the completion of the plan’s FSA grace period.

You are covered by TRICARE and TRICARE for Life.

HSA Rules for Dependents Under Age 26

While the Patient Protection and Affordable Care Act of 2010 (PPACA) allows parents to cover their dependent children (up to age 26) on their health plans, the IRS has not changed its definition of an eligible dependent for using HSA funds. This means that a person could have their 25-year-old dependent child covered on Plan C or N but are not able to use funds from their HSA to pay for medical expenses for that 25-year-old dependent. HSA funds used in violation of this rule will be taxable and could be subject to penalties. For all HSA plans, the IRS definition of an eligible dependent is one the HSA account holder is able to "claim" the child/relative as a dependent on their tax return. If the HSA account owner cannot claim the dependent on their tax return, they are not allowed to spend HSA dollars on services provided to that child/relative. The IRS defines a qualifying dependent child as follows: